Advanced Search

Rio Tinto Considers Cutting Ties with Star Diamond

Jun 29, 2022 9:39 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

Rio Tinto has put the Star-Orion South diamond project in Canada on hold until the end of the year while it weighs a possible exit from the venture.

The Australian miner will not contribute financially to the Fort à la Corne (FalCon) exploration during that time other than for care and maintenance, its joint-venture partner Star Diamond said Wednesday. Over the next six months, Rio Tinto plans to review its alternatives regarding the site, including removing itself completely.

“The board of directors of Star Diamond is disappointed by these decisions,” the company noted, adding it would work with Rio Tinto to assess alternative measures.

The move comes after the parties last year settled a long-running legal dispute over the terms of the joint-venture agreement, during which Star Diamond considered cutting Rio Tinto out of the project. The two signed a new agreement in December 2021 that called for Rio Tinto to front the funds for the project until the companies decided whether to develop the mine, based on the results of a feasibility study. In return, Rio Tinto’s share in the project was upped to 75% from its previous 60% holding.

In May, Star Diamond reported the study showed a “significant proportion” of high-value, type IIa rough in Star-Orion South, with two of its units containing between 46 million and 79 million carats. Rio Tinto was pleased with the results, according to Star Diamond.

“Rio Tinto confirms it has advised Star Diamond...that it is reviewing options for the FalCon project, which will continue in care and maintenance through to the end of 2022,” a Rio Tinto spokesperson told Rapaport News. “There are many variables to be considered in the next steps, and we are working closely with Star Diamond and local stakeholders to assess the options, including a potential exit.”

Image: The Star-Orion South exploration project. (Star Diamond)
Tags: Canada, diamonds, FalCon, Rapaport News, Rio Tinto, Star Diamond, Star-Orion South
Similar Articles
Burgundy yellow diamonds 140Burgundy Diamond Mines Inks New Polished Deals
Aug 03, 2022
Australia-based Burgundy Diamond Mines has signed a two-stage agreement to provide polished fancy-color diamonds to prominent Perth
Lucapa 170ct pink diamond 140Lucapa Unearths 170ct. Pink from Lulo
Jul 27, 2022
Lucapa Diamond Company has recovered one of the largest pink diamonds in history: a 170-carat stone from
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2022 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.